New Relic vs Datadog APM
New Relic and Datadog APM are both popular tools in the DevOps & Infrastructure space. New Relic uses a freemium model starting at Free, while Datadog APM is paid from $31/mo. New Relic offers a free tier, while Datadog APM does not. Below we break down features, pricing, strengths, and weaknesses to help you decide which tool fits your workflow best.
Last updated: March 2026
Quick Verdict
Choose New Relic if you want full-stack observability platform with ai-powered error analysis.. New Relic's biggest strengths include generous free tier with 100gb monthly data and ai assistant accelerates troubleshooting. Plus, it has a free tier to get started. Choose Datadog APM if you prefer ai-powered distributed tracing and application performance monitoring.. Key advantages include best-in-class distributed tracing capabilities and ai proactively detects performance anomalies. It's also rated higher (4.4 vs 4.2).
Full-stack observability platform with AI-powered error analysis.
AI-powered distributed tracing and application performance monitoring.
| New Relic | Datadog APM | |
|---|---|---|
| Pricing | Free | $31/mo |
| Free Tier | Yes | No |
| Pricing Model | Freemium | Paid |
| Rating | ★ 4.2 | ★ 4.4 |
| Categories | DevOps & Infrastructure | DevOps & Infrastructure, Debugging & Error Fixing |
| Key Features | 6 features | 6 features |
| Feature | New Relic | Datadog APM |
|---|---|---|
| Full-stack application performance monitoring | ✓ | — |
| New Relic AI for natural language troubleshooting | ✓ | — |
| Infrastructure and Kubernetes monitoring | ✓ | — |
| Distributed tracing and error tracking | ✓ | — |
| Real user monitoring and session replay | ✓ | — |
| 100GB free data ingest per month | ✓ | — |
| Distributed tracing across microservices | — | ✓ |
| AI-powered anomaly detection with Watchdog | — | ✓ |
| Automatic service discovery and mapping | — | ✓ |
| Code-level flame graphs for performance profiling | — | ✓ |
| Error tracking with trace correlation | — | ✓ |
| SLO monitoring and alerting | — | ✓ |
New Relic
Pros
- + Generous free tier with 100GB monthly data
- + AI assistant accelerates troubleshooting
- + Full-stack visibility in a single platform
- + Strong Kubernetes and container monitoring
Cons
- − Costs increase significantly beyond free tier
- − Query language (NRQL) has a learning curve
- − Some features less mature than Datadog equivalents
Datadog APM
Pros
- + Best-in-class distributed tracing capabilities
- + AI proactively detects performance anomalies
- + Seamless integration with Datadog's full platform
- + Automatic instrumentation reduces setup effort
Cons
- − Expensive — pricing per host adds up quickly
- − Requires Datadog platform commitment
- − Complex pricing model can lead to bill surprises
The Bottom Line
Choose New Relic if: you want full-stack observability platform with ai-powered error analysis.. It has a free tier to get started, which Datadog APM lacks. It's completely free to use. Keep in mind: costs increase significantly beyond free tier.
Choose Datadog APM if: you prefer ai-powered distributed tracing and application performance monitoring.. It holds a higher user rating (4.4 vs 4.2). Keep in mind: expensive — pricing per host adds up quickly.
Both tools compete in the DevOps & Infrastructure space. The right choice depends on your specific needs, team size, and budget.
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